 "NSEL promises to clear dues in 7 months, but brokers not happy")
New Delhi: Crisis-ridden National Spot Exchange Ltd (NSEL) today submitted its seven-month plan with regulator FMC for settling dues worth Rs 5,600 crore to investors.
FMC said it will take a decision on the settlement plan after getting views from brokers and investors while directing NSEL not to make payments to related-entity IBMA (Indian Bullion Market Association) without prior approval.
As per NSEL, the settlement process could start from August 16 and run till March 11, next year. Earlier, the exchange had said it would settle the payments to over 13,000 investors over the next five months.
[caption id=“attachment_1035315” align=“alignright” width=“380”]  Reuters[/caption]
FMC has been empowered to oversee the settlement process.
“Today, we have finalised the detailed settlement plan… Starting this Friday, August 16th, there will be pay-in every Friday and pay-out every subsequent Tuesday,” NSEL MD and CEO Anjani Sinha said in a statement.
As per the plan, Rs 3,494.4 crore would be settled this year in weekly instalments of Rs 174.02 crore. Another Rs 860 crore will be paid in ten weekly instalments of Rs 86.02 crore each during January-March quarter next year.
During this period, NSEL said some members would settle their dues worth nearly Rs 1,220 crore through sale of commodities, fixed assets and land among others.
There are 24 buyers required to complete funds pay-in obligation to ensure smooth settlement, Sinha said, adding the focus should be on these buyers/processors for realisation of pending dues.
“FMC has asked NSEL to share their settlement plan through their website and get feedback of investors and
brokers. FMC will take a view after receiving their feedback. “We have asked NSEL for certain information on IBMA which is their related entity and not to make any disbursement to them without our approval,” Forward Markets Commission (FMC) Chairman Ramesh Abhishek told PTI.
However, brokers are not too convinced with the settlement plan. According to a Business Standard report, many brokers raised fresh doubts about the capability of the exchange to pay. Among other things, brokers also said the planned payment period was a rather long one.
NSEL is engulfed in a crisis after the national spot commodity bourse suspended trade on all its contracts, raising concern over the possible defaults of Rs 5,600 crore dues to about 13,000 investors.
According to the NSEL, 21 entities owe nearly Rs 5,600 crore to investors, with the maximum liability of Rs 929 crore from N K Proteins.
With inputs from PTI
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
](https://images.firstpost.com/wp-content/uploads/2013/08/investorsthinking.jpg){kind=link}